Since this apparently bothers people, I'll try to fix it at some point. A more faithful statement would be that we start by investing work w, get a return w2 ~ log(w), reinvest it to get a new return log(w + w2) - log(w) = log ((w+w2)/w). Even more faithful to the same spirit of later arguments would be that we have y' ~ log(y) which is going to give you basically the same growth as y' = constant, i.e., whatever rate of work output you had at the beginning, it's not going to increase significantly as a result of reinvesting all that work.
I'm not sure how to write either more faithful version so that the concept is immediately clear to the reader who does not pause to do differential equations in their head (even if simple ones).
Well, suppose cognitive power (in the sense of amount of cognitive work put unit time) is a function of total effort invested so far, like P=1-e^(-w). Then it's obvious that while dP/dw= e^(-w) is always positive, it rapidly decreases to basically zero, and total cognitive power converges to some theoretical maximum.
Summary: Intelligence Explosion Microeconomics (pdf) is 40,000 words taking some initial steps toward tackling the key quantitative issue in the intelligence explosion, "reinvestable returns on cognitive investments": what kind of returns can you get from an investment in cognition, can you reinvest it to make yourself even smarter, and does this process die out or blow up? This can be thought of as the compact and hopefully more coherent successor to the AI Foom Debate of a few years back.
(Sample idea you haven't heard before: The increase in hominid brain size over evolutionary time should be interpreted as evidence about increasing marginal fitness returns on brain size, presumably due to improved brain wiring algorithms; not as direct evidence about an intelligence scaling factor from brain size.)
I hope that the open problems posed therein inspire further work by economists or economically literate modelers, interested specifically in the intelligence explosion qua cognitive intelligence rather than non-cognitive 'technological acceleration'. MIRI has an intended-to-be-small-and-technical mailing list for such discussion. In case it's not clear from context, I (Yudkowsky) am the author of the paper.
Abstract:
The dedicated mailing list will be small and restricted to technical discussants.
This topic was originally intended to be a sequence in Open Problems in Friendly AI, but further work produced something compacted beyond where it could be easily broken up into subposts.
Outline of contents:
1: Introduces the basic questions and the key quantitative issue of sustained reinvestable returns on cognitive investments.
2: Discusses the basic language for talking about the intelligence explosion, and argues that we should pursue this project by looking for underlying microfoundations, not by pursuing analogies to allegedly similar historical events.
3: Goes into detail on what I see as the main arguments for a fast intelligence explosion, constituting the bulk of the paper with the following subsections:
4: A tentative methodology for formalizing theories of the intelligence explosion - a project of formalizing possible microfoundations and explicitly stating their alleged relation to historical experience, such that some possibilities can allegedly be falsified.
5: Which open sub-questions seem both high-value and possibly answerable.
6: Formally poses the Open Problem and mentions what it would take for MIRI itself to directly fund further work in this field.